Each year when I attend the High Point Market one question I am always asked is “what is the news you have heard from others about the show?” Or what were my general observations or impression? Each day when I attend the show I will park my car at the Oak Hallow Mall and take the bus in. The bus gives you a surprisingly great place to talk to people and get a pulse on the show or how they feel about it. Here are my observations or things that I heard:
1. Happy times: Most people I spoke to told me they were generally pleased with how High Point was going. They said it was not a blow out market or record setting market but the sales were good. They also said that the customers who were there were buying and seemed to generally be in a better mood than in markets past.
2. Attendance: Attendance is something that is very hard to gage. I normally gage it by seeing how many lots filled up at the Oak Hallow Mall. That is of course not any kind scientific accounting, but just a general one. I also felt like at least in the IHFC that on Wednesday and Thursday there were quite a few people roaming the halls. In many of the past markets I had seen the halls completely empty on Thursday morning. But it seems that those days had a steady flow of people. Despite this the attendance was not as good as it has been in shows past. One reason that many people gave was that the Milan show was going on at the same time so many people were attending that show.
3. Location, Location: Of course the best building for traffic by far is in my opinion the IHFC, but I also found that several other locations were looking up. Most notable was the C&D which seems to have improved over the years. I also heard that 200 Hamilton will get in some new key major tenants this coming October market, which may also help that building and surrounding areas. Market Hall seemed to be thriving at least on the 1st few floors.
4. Products: I overhead one lady say that this was her first time back to market in 9 years and she did not feel like much was new. Obviously I feel like she was not looking in the right places. The market has consistently changed over the years and as always the array, kinds, types and colors of the products always surprises me. There are a lot of great creative companies out there—some even change their showroom every single market. In my opinion the markets continue to get better as the selection of products continues to improve.
Let’s all hope that we can build upon this market and that the October market will be more optimistic and positive and the economy will continue to grow. We can all hope that this will be the case.
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Chinese Girlfriends & Money
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The other day I was speaking to my driver Ho and I teased him by asking him, if while he was waiting for me in Guangzhou,he was going to go visit his girlfriend. He then said “Oh no, I have no money for a girlfriend, my wife is enough. But then he added if I had money I would have 10 girlfriends!” There was no question there if having a girlfriend was morally wrong or if it would hurt his wife, children or marriage. The issue was simply there was not enough money for him to have a girlfriend. This I am afraid can be a common sentiment in China.
I have been in China a long time, but this logic in thinking of love, girlfriends and money baffles me. The question or whether or not to have a girlfriend should be a moral question not a question about money. There is a saying by many Chinese girls that they would rather cry in the back of the BMW than to be laughing on the back of a motorcycle!
This is not at all new to me. Years ago myHong Kong boss named Patrick, who had a lot of money, was also well known to have a lot of girlfriends and prostitutes. It was common knowledge in our company as he even bragged openly about it in front of his wife. His wife never really seemed happy, because she was after all one of those women crying in the back of the BMW.
I think the Chinese should change their saying and should instead say I would rather be happy on the back of a bicycle with a man I love peddling away than to be crying in the back of a BMW. Love can never really be bought or sold, it is something that must be freely given.
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Addicted to Downton Abbey
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The other day I called my mother to talk to her and she said “Can I call you back I am watching the last episode of Downton Abbey. “ I was jealous, not because she would not talk to me but because I missed that episode and was dying to watch it. I admit, I am addicted to Downton Abbey.
What is it about Downton Abbey that has the world so engaged? I think it is because on some level, the world is longing for a time when our societies meant something important. A time when a person’s name, honor and reputation had importance and people did not ask what was right or wrong so much but instead went ahead and did what was morally right.
After all isn’t it morally wrong to find a way to cheat so you can take the rides sooner at Walt Disney World? Or to get a Pell Grant even though your parents are paying for your education and you figure the government can pay the rest so you will not need to work? Isn’t it morally wrong to wear an outfit and then return it to the store for a full refund just like it is wrong to cheat in school, on your taxes or in business?
It seems we live in a world where everyday moral lines between right and wrong are being crossed and broken; a world where people find ways to cheat the system or to cheat each other. So I think this fascination about TV shows like Downton Abbey says a lot about our society—that that we miss the time when honor and morality actually had meaning.
One of the most annoying things before, during and after the Chinese New Year is the Chinese love for noise as they set off firecrackers. There is no specific rule for when or how they set them off and I have heard them set them off in the middle of the night or early morning. These firecrackers are usually loud and messy as they can leave an entire street covered in red paper. The city of Guangzhou has a ban on the use of firecrackers, but in other parts of China they are permitted.
I am not sure what is about the fascination that motivates the setting off these firecrackers, but the Chinese seem to be mesmerized by them, as the bigger, longer and louder the better. Many times if I am on the phone and the firecrackers go off I have to stop my conversation and wait from up to 5 or10 minutes. It seems that everyone has to set them off. If your neighbor does then you need to. It can go on every month but is mostly used before, during and long after the Chinese New Year period.
I recently found out that this loud, noisy tradition has roots in a monster story. Traditionally the Chinese believed that at the end of the year a monster would come to you if you did not place red paper around your door frame and then light firecrackers to scare them off. In short the firecracker is believed to scare off all evil spirits and misfortune for the New Year. They are a sign of luck. So perhaps the more luck you want in the coming year the louder your firecrackers should be. In a Chinese New Year parade the firecrackers will be set off at the feet of the Dragon to keep the dragons awake and alert and to keep the evil spirits out and misfortune away.
I do not know about you, but I think I am going to go out this New Year and not only just join in the fun but also go get myself a loud set of firecrackers to keep the Dragon awake to ward off all those evil spirits and misfortune.
On Dec 13, 1937 Nanjing experienced what was one of the most brutal and little known attacks of World War II, now famously called the Rape of Nanjing. The Japanese invaded Nanjing China and for 6 weeks and longer, terrorizing the inhabitants of the city during December 1937 and long into January 1938. Hundreds of thousands of Chinese civilians and soldiers were murdered, in fact some say the number was as high as 300,000. The reason they call it specifically the rape of Nanjing has a lot do with what actually happened there. It is estimated that anywhere from 20,000 to 80,000 Chinese men, women and children were brutally raped by the invading Japanese soliders, making this not only one of the gravest events during this time period but also one of the most brutal.
The Rape of Nanjing has long been a sore spot between China and Japan. Japan has admitted the massacre took place, but disputes the numbers of killed and raped that the Chinese have given. The problem is simply that the invading Japanese army conveniently destroyed any records of this time period so the truth could never really be known.
This event is about ready to come to life again, but on the big screen with Christian Bale, the famous Batman actor, in a movie called The Flowers of War. You can view the official trailer here http://www.youtube.com/watch?v=0wWitJC34AM. Christian Bale has joined forces with a Chinese production company to tell a fictional story about this era of China’s history during the Rape of Nanjing. The movie is interesting since first of all the Chinese have spent a lot of money on it. For this production they brought in a lot of big named actors. Secondly, they have hopes for their first Oscar for a Foreign Film and critics say they have a very good chance to get it; and thirdly, and most importantly, it will help the world to understand on some small level the story of what happened during this brutal Rape of the City of Nanjing, so that hopefully we can learn from past mistakes and ensure nothing like this inhuman brutalityever happens again anywhere in the world.
When the movie comes out, I will definitely go to the theatre to see the big screen production. I feel that we should try to support films that try to remind us about the mistakes of the past so that we can on some level honor those who suffered because of this unnecessarily brutal attack.
Many times I have been asked by people if I drive in China, the answer is NO. Certainly I have a license and I have driven all around the world on all sides the road and in all kinds of road conditions, yet I make a calculated choice not to drive a car in China. First and foremost I would need a Chinese Driver’s License, which I am sure I could get, but more than that, China has some of the world’s worst trained drivers.
There is a craze now in China for people to get a driver’s license—even if they do not even own a car. They hope to one day own a car, but they presently do not own one nor do any of their friends or family own a car. In short they have no access to a vehicle, but still they want to have a license. They are paying about 4,000 RMB, which is about 630 USD to learn how to drive. This amount will buy you a few hours driving time in an actual car and also a crash course for the written exam. To get a license they must pass a written and a practical test. The key to all this is that these drivers do not own a car or have access to a car, so many of them are only in a car for a few hours to practice driving before they take an exam. I do not know of any drivers anywhere in the world—especially on roads like the roads in China—where people will come out on the street assuming they have the right-of way.Or busses will suddenly stop for no apparent reason. In many places there is rain, mud and even snow and icy conditions that even a well trained driver would find challenging.
This is why there are so many scary drivers on the roads in China these days. There are many drivers who really do not know how to drive properly. But more than that many have little or no real practical experience—yet their name is on a license. I would like to see these same drivers being able to park or turn properly with just a few hours practice, much less parallel park without hitting the other cars or merging on to a freeway without getting hit.
If China continues to allow these people to obtain licenses, one day these crowded roads could become extremely unsafe with all these poorly trained and experienced drivers. My advice for those foreigners considering to drive in China, is to spend the money to rent a qualified driver, let them deal with the unskilled madmen on these roads, and you stay safely buckled up in the car.
In China today it is common to see a sign that says, this area is a “Go Greenway or in other words a green zone. And if you look under the sign you will probably see a pile of garbage. Pollution and other environmental problems are huge in China—as in the rest of Asia. I have found as I have traveled around Asia, that most Asians are not aware that things like tossing garbage out a car window is bad manners or dumping your trash on the street is considered wrong. To compound these problems there are few public garbage cans where trash can be placed in; or the ones they have can be overflowing and have not been emptied for a long time. Many times the Asians wonder why I will hold onto an empty bag or bottle until I can find a proper trash can. To them they think just drop it, don’t worry. China does have a very strict environmental policy that they are working hard to enforce, but fully enforcing such a new policy will take time and education.
When I first came to China to study in 1986, we were told to toss our garbage out the window. I lived on the 5th floor of a 5 story high dorm area and was always thankful I was not on the 1st or 2nd floor incase anyone missed in their tossing of garbage. Right below my windowwas a blank piece of land and everyday everyone in the building would toss their garbage out the window to the land below. There was no public trash area and there was no place for us to place our garbage except by tossing it out the window, usually several times a day. Anyone who has lived in Asia knows that last thing you want to ever do is to leave food, crumbs or garbage lying around not sealed up as that is the quickest way to invite cockroaches or rats to come and live with you. So each day we all threw our garbage out the window.
You may think that that area around the dorm was dirty and smelly, but actually quite the opposite. Why? Because several times a day there was a lady with a large broom who swept it up and then took it away. I remember thinking then and I continue to think now that it is one of the more ineffective and messy systems of waste removal I have ever seen in my life.
Understanding this can help on some level to understandwhy many Chinese do not think about who will pick up after them or who will clean up the garbage they toss about, they just figure someone will. This also shows the challenge that China has to clean up their environment and pollution and why doing so will take re-educating the public and require much more than putting up lovely signs that say “Go Greenway” and designating an area as a green zone.
Earlier this year I spent a lot of time looking at production near the coast in Central Vietnam. Each morning as I have walked on the beach I have been amazed with these round Bamboo Basket boats that the fishermen are using. To me these boats show the ultimate use of Asian ingenuity by finding a way to use the materials they have locally available to solve a practical problem. I have been amazed each morning as I have watched these fishermen row out to sea in these small boats, even standing up in them and fishing. Some of the boats are big enough so they bring their pets with them such as a pet dog. The boats have impressed me because they allow the fishermen to stand up in the boat while fishing. The boat rolls with the waves instead of cutting through them. They also allow in a bit of water so that the fish can be placed in the boat and still are alive by the time they bring them to shore. This of course allows them to stay fresh. If I were into fishing, I would love to have one of these round boats to go out on the ocean to catch fish.
To me, the round boat also represents things we can learn from Asia. Here are some I feel are the most important:
1. Ingenuity: All over Asia we see ingenuity being use. We see how Asians have taken local materials found uses for them. One cannot help when in a major Chinese city to see entire skyscrapers enclosed with bamboo as scaffolding. This like these round boats is a great example of taking the resources you have available and finding a way to make them work the best way possible.
2. Education: There is little doubt that many Asian societies hold a good education as being very important. The Chinese in particular are always willing to sacrifice for the next generation. That is why sometimes in a factory you may see an old man hunched over mopping up the floor. That same man instead of eating a full bowl of rice at a meal may cut his rice serving in half to save money for his son to go to school. He knows that education is important and though he may never do more than clean up a factory his hope is that his son or his son’s family will have a better life because of his sacrifice and belief in education.
3. Families: Families have always been very important to the Asia societies. The family is the bases of all relationships. In Asia the family is very important and most Asian will help out their families.Children help out their parents, even work to help out a sibling get through college or get an education. The family will work together as a team to help each other. There is not so much of this is mine and this is yours, but instead they will work together to help out their immediate and extended families. One reason is they do not have social welfare programs to fall back on or to turn to so they instead build a strong family support system. It is always why they do not place their parents in Nursing Homes nor do they allow members of their family to be out of the street homeless.
4. Work: There is a definite work ethic in the Asian countries. Whereas in America we may have this feeling of work hard, play hard. The Asians feel that to work hard and have some work to do is very important. Work is something that is valued and considered to be a good attribute to have. Just look at many of the factory workers here in Asia and you will see some individuals who work very hard every single day without complaint.
5. Frugality: Frugality is a great attribute we can learn from Asia. Being able to have a few pieces of clothing that you wear time and time again. Have a few pairs of shoes not a closet full. Learn to save your money and not spend it. Be able to live cheaply and to not have to fly business class, stay in 5 star hotels, but instead save your money and make every single dollar count.
As I walk upon that beach and I look at these round bamboo boats, their story is more than just a round bamboo fishing boat that is on the beach, but their meaning is something much deeper of things we can in west can learn and adapt from the east.
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The Old Farmer Lost
His Horse
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As the markets tumbled this last week, I was reminded of a favorite story about an old farmer on the frontier who lost his horse that my Grandfather translated from Chinese. When the markets trumbleand the economy continues to look bleak, we may at times ask ourselves what next or why does this happen?. But as the Old Farmer teaches us we may never know, it may turn out to be a good thing after all.
Here is how the story goes:
“An old farmer who lived on the northern frontier of China, on the border of Mongolia, lost his horse. It had wandered into the desert, into no-man's land. When his neighbors heard of it, they came to his house to commiserate with him. But all he would say was: "You never can tell; it may turn out to be a good thing after all.”
Some months later, that horse came back, bringing with him a much finer horse. Thereupon all the farmer's neighbors came in to congratulate him on his good luck. But again all that the farmer would say was: “You never can tell, it may not be such a good thing after all."
Since the family now had an extra good horse, the farmer's son took a fancy for riding the new one. Before long, however, the son fell from his mount and broke his leg. Once again., the neighbors flocked in to express their sympathy for the farmer’s bad luck. Even so, all that the farmer would say was: "You never can tell, this may turn out to be a good thing, after all."
Sure enough, before a year had gone by, fierce horsemen from the desert came plundering across the frontier. They came in such numbers that the authorities drafted for military service every able-bodied young man who could draw a bow or march in battle. Nine out of ten young, men in that region lost their lives. Only the fact that the son was lame and the father was old preserved the family from harm.”
Translated from the Chinese Language by Arthur W. Hummel Sr,, This is an old Chinese Story written more than 2000 years ago, from the Book of Huai Nan-tzu who died In 122 B.C.
The Chinese have a popular pop song that repeats over and over again the words “Wo Ai Zhongguo” when translated means “I love China.” China is a very patriotic country. This has been encouraged throughout the ages by emperors, warlords and the communist party. Patriotism has always been used in China as a way to ensure social stability and to ensure that unwanted foreigners or foreign influences stay out.
The importance of patriotism in China should not be underestimated as a political tool of the government. If you ask most Chinese, the educated, the poor, those who have traditional thinking, and even those who may have more western thinking, you will find that a majority of them will flatly tell you that Taiwan is part of China. This view of course is very different from how we may view the subject in the west.
This patriotism can also be seen in some of the clothing the Chinese elite may be wearing to formal functions. Many of them will dress in traditional Chinese clothing. This in a sense is how they are showing their patriotism for their country. It may also surprise many westerns that many Chinese may identify more with some of the local Chinese brands than brands known in this West; and they may go out of their way to buy something that is made locally instead of the western brand. It means that those who enter the Chinese market need to carefully craft their marketing to consider the concept of patriotism. Using western images and a western face in the advertising and campaigns may need to be reconsidered or revised.
We went to an Elementary school on their first day of school to present them some desks donated by your contributions to Mondoro Charities I was very pleasantly surprisedto see the school had a group of students present the flag. The students all marched like soldiers, by taking long steps, and raising a straight leg up to their waist as they proudly marched up to the podium to present the flag on the flag pole. It is common to hear the national anthem being played around China when schools and other organizations conduct a daily flag ceremony. On some deep level Americans and other nations should admire the Chinese nation for their deep rooted patriotism and the great love they have for their country and for just being Chinese.
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| Best Buys China has closed its doors. |
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Best Buy has recently announced that it was going to exit its China operations, by closing all 9 of the stores they presently have operating in China. Instead Best Buy said they will focus on another retail format called Five Stars. There are several things that any industry can learn from this:
1. Success in US does not always translate to success in China: This is perhaps one of the biggest and hardest lessons that many US companies need to learn. The US model does not always work in China and infact many times will not. Brand recognition in America, does not always translate to brand recognition in China. The fact is that Chinese may know the names of the American brands, but may still prefer to buy a Chinese brand. A business model which works well in America or Europe does not necessarily translate into success in China.
2. To Work in China You Need to Understand it: My grandfather, who served as a teacher for 14 years in China,often said that he “learned something new from the Chinese everyday.” What he was really saying was that to understand China you need to study it, and learn the language and culture. For a westerner to understand China requires an ongoing process. China has a very unique history and political environment and a culture that has many levels and complexities. The value many Chinese place on things may not be the same as what Americansconsider as valuable. The most successful companies in China, have learned this lesson, and make a considered effort to fully understand their potential customers before they commit to selling in China.
3. Never Under Estimate Your Chinese Competition: Take for example the popular Chinese C2C website Taobao. Most Americans have probably never heard of Taobao, but in China Taobao is a very popular. Ebay has tried to enter the Chinese market, but TaoBao, when they heard that Ebay was entering China aggressively went after the online C2C market. Since Taobao fully understood the Chinese consumer and even had a name (TaoBao means digging for treasures) that appeals to the Chinese, TaoBao is clearly the front running winner in what was once a battle for this market. The Forbes Magazine has an interesting blog on this. Ebay simply thought that the business model they had used everywhere else would work in China and they greatly underestimated the competition from a local Chinese company. Today Ebay is losing out of the C2C business in China because Taobaoholds such a firm footing in this market.
4. Look for the signs then adapt: Best Buy’s exit from China teaches us that when the signs are clearly telling you the business model you have is not working in China, it is time to adapt or get out. Best Buy understood that their US model for a store did not work in China so to their credit they are switching their focus to another model they feel will work. Time will only tell how successful their Five Stars Stores will be, but the fact that they are willing to change their model, use a name that seems to appeal to the Chinese more, and refocus on what they feel is working, shows they are at least now on the right track.
There is a lot of talk in our industry about selling into China and the Chinese market. American companies should look at the dismal rate of success ofmany of the large American companies. They will find one overwhelming lesson:Companies looking to sell into China must be willing to adjust their business model to fit China—not the other way around.
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What about the Chinese Tiger Mom?
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Are Chinese Mothers Really Superior? This was a question that was posed in a recent controversial essay by Amy Chua in the Wall Street Journal entitled “Why Chinese Mothers are Superior?” As can be imagined just from the title alone this article has caused a lot of stir and controversy. In the essay Amy Chua admitted to calling her children words like “garbage.” So far scores of people have commented and most of them have been out right angry and upset that Amy Chua would have the nerve to call Chinese mothering superior in anyway. Amy Chua’s own daughter has felt the need to come out with a rebuttal entitled Why I love my strict Chinese Mom. But, many in America feel the method and parenting style described by her borders on child abuse. When I read Amy Chua’s article to my mother, she told me she was not sure what to think of it. She felt conflicted, as many of us feel, for I was raised in a strict but loving home but was never called “garbage” by my parents.
In China I have seen this Chinese mom in action many times. I have watched as Chinese mothers slap or hit their children, usually on the head, while yelling at them in public to “be good and behave.” You can bet that child usually stopped what they were doing right there. I have seen my staff’s son sit outside the door of their apartment on a chair and table on a bitter cold day doing his homework until it was done—and in the time required. I mean what American kid really wants to sit out in a hard, cold hallway for a long period of time anyway?
In China a teacher may take a ruler or stick to discipline a child or even yell at a child in public. Brutality in the classroom in China is tolerated because teachers are given the utmost respect and should be listened to at all costs even with severe punishment. We would be shocked in the west when we see children, buddle up in layers of clothing going to school on a bitter cold morning at 6:30 am or earlier only to sit for long hours in an almost bare classroom that is also bitter cold. Schools are not thought of a place for children to explore or play but more a place to learn and obey. Most Chinese schools teach by forcing children to repeat and memorize all day long for hours on end. But yet despite all this harsh treatment, poor conditions, and intense study required by Chinese students at an early age, Shanghai students were recently ranked number one by PISA (Programme for International Students Aceessment). The Shanghai fifteen year olds took top scores in reading, math and science among 65 countries and regions. This is only in Shanghai and not all China, but I believe it is a sign of things to come because China will continue to make education a priority. All this is happening at a time when most Americans will readily agree that our education and school system is continuing to slip. Could this in part be due to what Amy Chua calls the Chinese Mom who is out there demanding their kids excel? Amy Chua does make some compelling points that are being backed up by the success of the Shanghai school system.
Whether you agree or disagree with Amy Chua’s views, she makes a very valid point that all the shame, blame, yelling, hitting and other things that Chinese mothers do to their children, is in my opinion cultural. What many Chinese mothers can get away with in China, and consider just a part of being a good mother and raising a child, would have the government social services knocking on your door in America.
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Saving Face is Very Important in the Chinese Culture.
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There has been a lot written about the Asian notion of Saving Face. Sometimes you will see the Chinese rub their face to signify about losing face. Saving face and pride are not the same thing; pride is completely personal and saving face is public. Saving face is the desire to not look weak or bad in the eyes of others or to not make another person also look bad. This has to do a lot more with respect than pride. For the Chinese respect is very important.
Face saving is also a compromising technique. To compromise on a problem, in many cases will allow both sides to save face. In the west we may look at winning and losing, but in Asia they will strive tocompromise and face saving. You can compete with another person, but you must make sure that your opponent will save face. In other words good sportsmanship in all you do. This is one reason why in doing business in China, a lot of the negotiations will center on compromise and saving face, ie you do this and then I will do this, etc. If a factory does something wrong the worse thing you could do in dealing with the situation is to rub their face in the problem. If you really want to settle the problem then you need to talk about errors or things both sides could have done differently and then come out with a compromise. Saving face is never about pushing your opponent or the other side in a corner to get your way, if you do that then you better be prepared for the attack and the outcome that will follow. ThereforeSaving face has to do with harmonious living than being right or winning.
Most westerners have a hard time to really understand the Asian face saving. In our societies we are taught that being right is important, to stand up for our rights and to not look weak. This can be completely opposite of what is required to save face. But foreigners who are living or working in or with Asia need to be prepared to learn to adjust and provide face saving solutions. A collective, culturally different society from our own is not going to change their traditions easily. To live or work collectively in or with Asia you will need to deal with saving face on some level.
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Frugality is a Traditional Virtue in China.
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The Chinese have a proverb that says “Work hard and live simply and frugally.” This demonstrates an important attribute and characteristic we should know and appreciate about the Chinese. Life is about working hard and at the same time we must be frugal. The Chinese believe that extravagance and waste should be avoided at all levels of society. This is quite simply why in China you may see people who may look on the outside to be poor, but in reality they may have quite a bit of money in their bank account. This is all part of the Chinese traditional virtue of frugality.
Take for example Madame Gong Ruxin who died a few years ago in Hong Kong and had a massive fortune of over 4.6 billion dollars; her husband and she owned a large chemical company in Hong Kong called Chinachem. During her life she was considered to be one of the world’s richest women, yet she was known to live on less that 400 USD per month. She never bought any luxury goods and her favorite food was McDonalds Fish Filet Sandwiches. She did not care for designer clothes and infact wore leisure or traditional Chinese clothing. In the west we may consider these super rich to be more like misers who are not spending their money, but in reality these people are adhering to some of the traditional values the Chinese have had for centuries, that of being frugal and showing restraint and economy. Madame Gong Ruxin when she died left her fortune for Charity work in China.
China like elsewhere is changing, and these traditional values continue to also change. You see more people who are trying to “show off” or display their wealth and power. But at the same time, there are many rich out there who adhere to this traditional system. The Chinese are known for consistently saving money and not spending it; unlike their American counterparts. Many within China feel it is important to avoid waste in anything, whether money, food, clothing or even office supplies, because doing so goes against the very nature and grain of what the Chinese have been taught and lived by for centuries. After all these traditional values condemn the overtly show offs who display their wealth and power. Much of the world, and especially here in America we can learn from the Chinese traditional values - to be frugal, show restraint and practice economy.
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Being Part of the Group is Important in China
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My grandfather in his personal history tells of an experience he had as a young English teacher in China. He asked his students what day they preferred to have for a holiday. No one spoke a word and would not answer. Later the next day the students came back and told him what day they had all decided upon. This kind of collective behavior is common, even in Chinese society today. This lies deep down in the understanding of the Chinese physic that an individual’s identity is closely linked to their family, cultural, professional and social relationships. Where the western society has a notion of ME, the Chinese society have notion of WE. This is why as my grandfather pointed out; the Chinese will look for what is good for the group within their relationships, not as what is good for them as an individual. This is one reason why I always say that if I were stranded on a deserted beach in Asia and a group came on to the beach, chances are they would come and sit right next to me. In America we would consider this an invasion of our privacy and would want to see the group go to the opposite sides of the beach; in China this would be part of the collective behavior or being part of a group.
This group behavior can have a profound impact on those who are working or operating within China. If for example the group notion in an office is to slack off or cheat or not do any work, then the entire office may follow suit to be part of the group. In the past in China it was common to see many workers at their desk openly reading a newspaper or sleeping on their desk without any worry or concern that they would be in trouble. Everyone did it, so they did not worry, it was acceptable work behavior. But if on the other hand an office or organization is built upon honesty and hard work then more than likely the group will also follow in this route. It is not that the Chinese cannot think for themselves, but instead they feel that the individual’s behavior should be guided and directed by the group.
This also have an effect on the purchasing of goods or marketing within China. If everyone of a certain status has a specific kind of TV, then to be part of the group you will need to also have this same TV. In America we call this keeping up with the Jones, but this collective behavior and keeping up with the Jones is not the same. Keeping up with the Jones is more in trying to outdothe status of someone, i.e. your neighbor gets a new car, but you buy a nicer car to show him that you are his equal or more important than him. The Chinese collective behavior on the other hand is about belonging, being part of a social group, not about one-up-man-ship. That is the major difference.
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Families are Important to the Chinese.
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For the Chinese, family is one of the most important aspects of their daily life. It is the stability of the family that holds the social order in China together.The prospect of public exposure and shame is a deterrent to criminals if their extended family history or name would be exposed or openly discussed in a newspaper or TV. An entire family unit may be adversely affected. Conversely, the success of one member of the family,is also shared by the entire family unit as well.
Confucian values play a large role in this family responsibility and reward system. The individual will make sacrifices for the family, and in return they expect that their family will also be there for them as support, comfort and as a sort of safety net. It is common to go into factories large or small and find members of the same family working as management of the factory. Qualifications are not as important as blood. In China, if you are doing financially well, then you are expected to help support your entire immediate,and in many cases, extended family members. That is why it is common for most Chinese to give a portion of their income to their parents or siblingsbecause the family unit is expected to take care of their own first and not rely on the government. If one member of the family is ill, then the entire family unit is required to help and give what they can with those that have more, giving more and those that have less giving less, but the point here is that they are expected to give and help in some way and do so willingly.
This is of course a very different concept from our Western society which stresses individualism. For many, it may be a hard concept to really grasp. We might ask, well if I am doing well, why give to anyone or help anyone, especially aunts, uncles, cousins, siblings or parents? Why not keep it all for myself? Most parents in the West would never expect or much less want to have money from their children and many believe that they should spend their money now on what they want and not be concerned for their children once they hit the magic age of adulthood. We believe in independence, not interdependence. This is the core of the differences in the two societies. The Chinese family unit has interdependence between family members.
To really understand this aspect of the Chinese is at the core of what it means to be Chinese. The logic is that if a Chinese person has good success, luck or business fortune then they should help out others in their family. And in return they will gain the one thing they really want which is respect, pride and glory from their parents and relatives. To the Chinese, the family relationship is a permanent and lifelong affair. And quite simply to help out your family and add to your family’s harmony, wealth and success is one of the most important things you can do for this lifelong relationship.
This is the second part in a series of “Understanding China.”
 Crest’s Tea Flavored Toothpaste is Unique to The Chinese Market.
A few weeks ago I was at an American Chamber of Commerce Luncheon where several US Senators were present to speak to the American business community in Hanoi, Vietnam. During the luncheon a question was asked about China and the US Employment rate. One of the Senators went on and on about how America had to do something about the Chinese exchange rate. I sat in the audience and had to hold my tongue.
There is a lot of talk in the press about China and the exchange rate. Many in America take the view that if China just lowered their currency the American jobless rate would magically be solved – almost overnight. Here is my opinion about this great America vs China myth:
1. Manufacturing would return to the US: I am a great believer that America needs to manufacture more, but do American workers really want to be hand painting lamp bases or porcelain? Do they want to be making shoes for Target? First and foremost prices would increase significantly. Would Americans be willing to buy a pair of flipflops at Target or Walmartfor 30 USD vs the 10 USD they may pay now, especially if it is essentially the same product? We are so accustomed to bargains and deals I believe the consumers would just not buy the products.
InsteadAmericans should find a way to manufacture products that the world wants – more cars, trucks, airplanes, trains, engines, technology and other higher ticket items. If China’s exchange rate significantly changed then a significant number of jobs would not come back to America, but instead both countrieswould lose productive workers. Why? Simply, because many products made in China would be too costly for the Americans and people would stop buying them. Both America and China will lose in this scenario. When the world stops buying,many Chinese workers will have no place to work, and American workers will be no better off.
2. Chinacan and will buy American Goods: This is one of my favorite myths that that I often hear from Americans who just don’t know or understand China. I do not believe this would be the magical cure, even if the American goods were cheap, which I doubt they could be. First of all, China has a lot of people, but many of the people are poor and cannot afford much, including imported goods. Second the Chinese tend to be a nation of savers not spenders. One reason is that for many years they have not had a support system or an economy they could depend on; so they have learned to save or else perish. Third, and here is the harsh truth that may be hard for many foreigners to understand, the Chinese just may not really want or like American or Foreign goods. Many Chinese prefer a very specific look and design that is not typically American. For American companies to really sell into China they would need to understand the Chinese taste. For example who in America would want Tea Flavored toothpaste? Well Crest Toothpaste understands what the Chinese want that so they offer Tea Flavored toothpaste in China. There will be alearning curve for any company wanting to break into the consumer market in China. Most American companies, especially the Smaller to Medium Size businesses would have a hard time learningwhat they need to know. Their first effort may bring losses they don’t anticipate.
Whether China or America want to admit it, they are in an unhappy economic marriage of sorts and to get a divorce would be more devastating than if they worked together.
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In Chinese Luxury means “extravagant waste.”
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The word luxury inChinese She Chi has a meaning which can be challenging for anyone who plans to sell into China. The word She means extravagant and Chi means arrogant and wasteful. So the word luxury in Chinese could literally be translated to mean an extravagant waste.
As with all things in China, this translation has a historical content that goes back to the Han Dynasty (206 BCE – 220 CE) when Xu Shen first organized the Chinese dictionary. From the dictionary use of these Chinese charactersthe word luxury developed a negative connotation describing the abuses of the elite and upper ruling classes towards the lower classes. Later during the Qing Dynasty (1644-1911) Catholic Missionaries and Chinese Scholars in translating Chinese into Latin, continued to use these two characters of She Chi or extravagant waste to mean luxury. The translation was then officially adopted and continues to be used today.
To further complicate matters, throughout China’s history, Confucian, Buddhist and Taoist thought have all consistently taught that life should be lived frugally, and people should not display arrogance or show off their riches. Even today, frugality is considered by the Chinese to be one of the great traditional virtues. This is perhaps why so many of the consumers today in China tend to save more than their American counterparts and why many who come to China develop an exaggerated opinion that all Chinese are poor; when in reality there are many people here who may look poor on the outside but are rich by Chinese standards,if measured by the size of their bank account.
This points out that when marketers use the word luxury, it can be confusing or send mix signals to the Chinese purchasers. If you have for example a luxury car She Chi Che it could literally be translated to mean in Chinese an “extravagant wasteful car.” This is not the kind of meaning luxury marketers in China want to give to their potential customers.
For this reason many of the luxury brand marketers are changing the name they use from luxury, she chi to jing pin which means high end and fine products and they are dropping the word luxury from their marketing campaigns all together. This illustrates a point that when selling to another culture one of the most important things you can do is understand who you are selling to, their history, language and culture.
(To find out more about luxury behavior in China, I recommend reading “Elite China” by Pierre Xiao Lu).
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4th of July Celebrations – Expat Style.
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In America the United States Independence is such a big holiday that perhaps you may wonder how do American expatriates, who cannot go home, celebrate it? You will find that Americans around the world make this a very important holiday—perhaps it may mean more to Expats than to you! Even in a place like Hanoi, Vietnam there is a fun filled Independence Day celebration. This is ironic if you consider that this celebratory party is taking place just a few blocks down the street from a once notorious prison that held our service men during the Vietnam War—called the Hanoi Hilton. Just a short distance down that same street is the present Hanoi Hilton that is called Hilton Opera.
This party has all the trimmings of a regular 4th of July party, and it is not just for Americans, but Vietnamese and many other nationalities—so long as they purchase a ticket. A huge outdoor picnic buffet, Hanoi style, with American favorites such as hotdogs, potato salad, Mexican food , BBQ pork, Ruben sandwiches, salads, ice cream and donuts are all provided.
Entertainment and games is also included along with a show by the Hanoi Circus, a variety of outdoor games, and even face painting activity. One of my favorite parts of the evening is the US Marine Guard’s marching the colors as the National Athem is played by the Marine Pacific Brass Quintet. This always brings an emotional response from the Americans in the crowd. The evening ends with jazz music being played by a Grammy nominated artist Andromeda Turre and a raffle with over 150 prizes being given out.
Sounds a bit like your local celebration? This event which is sponsored by the American Chamber of Commerce, strives to bring a bit of home to those Americans who are living in Hanoi.
Look below to see some photos from our celebration this year.
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Photos of the crowd that attended.
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The tickets included an large buffet and other treats such as KFC Chicken and donuts.
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My friend Matthew Chao is showing his American pride!
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The Hanoi Circus came to entertain us. We had everything from jugglers, monkeys to rollerskates!
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This couple was spining around on those rollerskates!
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There were flags and decorations everywhere.
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As part of this cirus act, this man brought in two very large snakes. He was dancing with this snake around him. I am still trying to figure out how a half naked man with a snake is something American!
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This little boy was very brave to allow this snake to be put around him! As you see I did not volunteer!
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This was a watermelon eatting contest. A Korean man, not an American won!
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Marine Corps Quintet is presently on tour and they came all the way from Hawaii to play for us.
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Hanoi based US Marine Corps presenting the colors and flag.
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 Negotiating Chinese style is not always as easy as it seems.
A friend of mine who is an American who works in Guangzhou told me that he may need to start to take some anger management classes after all his negotiating in China. I told him that I wanted to know where the classes were held as I would be happy to sign up along with him. The truth is that in China negotiating is tough, it takes a lot of patience, self control and just plain endurance.
First the tea is poured. I don’t even drink the tea, so I take the cup and put it aside. We start on the small talk, weather, family, life and just about anything. About this time the cigarettes from the factory get lite up. There is no sense of there being a non smoking zone, so smoke gets blown in your face. I sit and try to move away from the smoke and not complain but keep a smile on my face of “I am so happy to be here today.”
At this point at least 45 minutes since we have walked in the door have past and we have not even started to talk about anything important. The room is filled with smoke and all the while we need to be sure to keep a smile on our faces. Then slowly the complaining starts. It can range from whole host of things but it is anything from labor being so hard to get, to supplies increasing in price to just about anything you can think about. The list can go on and on. We smile and tell them how the complaint does not matter or how we understand BUT….. And around and around we will go on this, the same complaints, our giving the same reasons but using different words or techniques each time we give them. This could go on for 1 to 2 hours. Finally sometime after my lungs are black from inhaling the smoke, my face is sore from putting on that fake smile we get the point while we are really there and what we need to talk about.
From an outsider all this can seem like a pointless exercise. I mean after all isn’t time money? Why can’t we get to the point of the conversation? I ask myself that question many times.
Here are some things to remember about negotiations Asian Style:
1. Negotiations Asian Style is a Skill. This requires a skill, that I find few foreigners really have. In the first place to really negotiate effectively you need to speak and under the language and culture. As a foreigner you may think you have won, but in reality you have not. This I have found is best to be done by Chinese to Chinese or by Asian to Asian. As a foreigner, you will get a lot more done by sitting and listening instead of trying to control the negotiating.
2. Shouting Does Not Mean Anger – Chinese shout when they talk. Chinese is just a loud language and noise is used to emphasis. So if you are sitting there not understanding a thing and you hear shouting, it does not mean anger. Shouting or loudness is used a lot, especially when there is negotitating going on.
3. Don’t Rush &ndash- This is harder to do than say, but sit back relax. Do not look like you are in hurry but act like you have all the time in the world, especially if you want to get your way in the negotiations. Take your time and work with the rythum, don’t try to break it.
4. Expect to Compromise –In fact in truth most Chinese would prefer to compromise with a problem than to go to court. Expect that there will be some compromise, so have an idea of this compromise ahead of time.
5. Expect Complaints –There will be complaining. It is the nature of the negotiation and do not take it personally. But find a way to weed through the complaints as some will be justified and many will not be.
There is nothing like a morning in Asia. The streets are full and buzzing and from very early in the morning people are out on the streets, parks and sidewalks to exercise. In a typical morning you can see everything from a dancing class, aerobics class, badminton to a weight lifting class. When I am in Hanoi, many mornings I get up early and get out on my bike to ride around the city. I have to start out between 5 to 5:15 am in order to have any hope to beat the morning traffic. I follow a route where I will circle around West Lake, go by a smaller lake called Tay Ho, then go to the downtown area near the main lake there called Hoan Kiem Lake, past Lenin Park and then on to my home. One morning I took my camera with me and took photos to show you about some morning exercise in Vietnam. I hope you will enjoy this photo blog as you follow along with me to see a typical day or morning exercise in Asia.
 Morning Exercise, a Photo Blog.
5:20 am – West Lake, This couple had their own tape player and the wife was leading aerobics while her husband was following along.
5:30 am – West Lake, This is a group of women with one man looking on. Probably they are engaged in some kind of stretching exercise, prior to a walk near the lake, but I can’t be sure.
5:45 am – West Lake and Tay Ho Lake Area – There is always a group of people here each morning exercising and stretching. If you stay at this area long enough you can find some very interesting stretching moves going on.
5:50 am West Lake and Tay Ho Area – Every morning these women have a street aerobics and dance class. This morning a foreign woman and man were running by and she stopped to try to teach them some correct moves for aerobics. I do not think the women were too happy as they you can see from the second photo they continued to do what they do each morning which is basically to wave their arms and shake their hips to the beat of the music.
6:15 am – Hoan Kiem Lake, Asia would not be complete without a morning Tai Chi Class. There are Tai Chi classes going on all over town and anyone can join in, even if you just got off your motorbike and still have on your helmet as this man did. Don’t be shy, if you want to join in, then join in!
6:20 am – Hoan Kiem Lake, Every morning rain or shine these guys have set up a portable weight room on the sidewalk. This morning as I stopped to take their photo they asked me to join them, I told them maybe sometime in the future!
6:30 am – Lenin’s Park, Morning Exercise would not be complete without a Badminton Tournament. There are badminton games going on all around the city. As you can see they even have the sidewalks painted and nets set up. Old and young alike participate and play badminton.
6:32 am - Lenin’s Park, All kinds of exercise is going on in Hanoi in the morning. Everything from Football (Soccer Games) to just morning stretching exercises.
Anyone who travels to Asia needs to take the time to get up early in the morning and go to a local park to see what is going on there. Otherwise you will miss this very important and exciting part of life in Asia.
Cow and Bike crossing
The other day I was out on a long bike ride with a friend of mine, and along the way we passed a sign that said “Cows and Bike “path only. I thought only in Asia would they put the Cows and Bikes in the same lane. Well after all aren’t the cows slow just like the bikes ought to be? I don’t know about you, but I prefer to avoid riding on the road dodging cows and going through cow dung along the way.
Asia is the land of “almost right.” At times I feel like they almost get it right. They erect beautiful buildings, and have all these high tech things but then some of them just do not quite work. They build a freeway and suddenly in the middle of nowhere the freeway stops, you have a light and then it starts again. I have no idea why they just couldn’t make the freeway go all the way through. Or my personal favorite is the freeway in Guangzhou that has a speed limit of 30 or 40 Kilometers per hour. Do you have any idea how slow 30 or 40 Kilometer per hour is? That is like 19 to 25 miles per hour. Most people do not even drive that on a residential street let alone on a freeway. I can bike as fast as that. I get frustrated when the freeways are empty and my driver is going 30 or 40 kilometers an hour down an empty freeway because the freeways are monitored by a camera, and you can get a ticket even if there are no police. Why build a freeway if you have to crawl along the way? A heavy foot on the gas is not allowed.
I have heard a lot of talk in America lately, and especially in our industry about all the problems in Asia; including the lack of containers, and that workers do not return promptly to work after the New Year. A third issue is my personal favorite: The statement by some people that they must buy their goods before the Lunar New Year because quality will decline afterwards.
Here is what my experience in Asia tells me about all three of these misconceptions:
1. Containers are always a problem as is shipping space during the Lunar New Year. Companies and customs close down for a week so that naturally there will be a backlog. If the American Government or our Ports closed down for a week we would also have a huge backlog. Imagine if Wal-Mart closed for 3 days? Well that is what happens during the Lunar New Year, everything is closed—sometimes effectively for more than a week.
2. Quality is always a challenge in Asia. Even with complete hands-on inspection it is a challenge in the best of times. The only thing you can do is have people on the ground who are working for you or if not you have to oversee quality yourself. My experience shows me that quality may decline during the time before the long Lunar New Year holiday as factories rush to complete orders. Once the New Year is over they have a fresh opportunity to make a fresh start. At Mondoro we spend a lot and time, effort, and money at the factories checking production throughout the entire production process. A good inspection team will always find quality problems at any time of the year.
3. Workers always come back from Chinese New Year late or leave early. The factories all know this and account for this. Sometimes they do come back late and one reason is simply that they have a long way to travel and it is for them a long hard ride that can take up to 5 days. I think if I had to spend 5 days standing on a Chinese Train or going by a crowded bus I would also postpone my trip if I could. Companies need to take this all into account because there will always be a long Lunar New Year holiday to contend with no matter how much we may want it to go away.
How to get full points?
I have been enrolled on-line in a degree program in Chinese Law with a University in Hong Kong. Their system of grading is based on Hong Kong and UK practices which has severely bruised my ego. You write a paper and they tell it can earn 100 points, but in reality they will only give you half that amount. An American University Professor I met on a United Flight coming back to Asia recently told me, “In the Hong Kong University system only God or the Professor can get the full points, they will never give it to the students.” This philosophy has been very hard for me as an American to handle. I expect an A paper that has a 100 point value to be 90, 95 or 100 points not 55, 58 or 60 points. Each time I see the lower scores I take a huge gasp, my blood pressure rises and I write an email to my tutor to ask them why I failed my paper when the only comment I got was “you covered all the points and did a very good job.”
All this demonstrates a deeper hidden philosophy between Asia and the United States, and how we each view positive re-enforcement. For example when I speak Chinese to someone I get a response ‘bucuo” or OK. To me as a westerner OK, just means OK. It does not mean great, but is just OK. But when someone who speaks very little Chinese and can only manage to say just a few words, the Chinese may exclaim Oh your Chinese is “hen hao!” Which literally means your Chinese is very good! I have often noticed this unstated cultural phenomenon.
The Chinese are generally modest in nature and will not come right out to say “look at me, look at how great I am,” so when they tell you that your Chinese is OK, what they really mean is your Chinese is acceptable or good. But to the struggling Chinese speaker when they say your Chinese is very good, what they are really saying is keep it up, your Chinese will become better. They are giving encouragement to keep trying to learn more Chinese. This is the same thinking that I am getting in my University courses and how they grade the papers. I will never write a 100 point, or even a 90 or 95 point paper. It is not possible and will never be possible. At the Master’s Level of study in Hong Kong, it just does not exist. It is a way to keep us all humble and remind us that no matter what we write it will never be worth the 100 points, never – ever. So between the 58 paper scores - the “you speak Chinese OK, - and the bad economy, my ego is bruised and broken—there there is no pride left all at all. The blessing in all this is that it continues to keep me very humble.
Is living in Asia cheap?
My sister and her family are thinking to come over to Asia for a visit. When I was speaking to her about this trip she said, ‘you know once we get there things should be cheap and not cost us much.” For some reason many people seem to think that living and working in Asia, is the “cheap” life where everything is inexpensive, good quality and so this allows us to rank in the dough. But nothing can be further from the truth since the reality is that goods and services and housing are generally cheaper and of better quality in other parts of the world than in Asia. Someone once called Asia as “Fools Gold.”
Asia is an expensive place to live. Hong Kong is ranked as the 5 th most expensive place in the world for expatriates to live. This puts them ahead of New York City which is ranked Number 8. Just below New York City is Beijing that is ranked Number 9 and Singapore that is ranked number 10. This is way ahead of Los Angeles that is only ranked as the 23 rd most expensive place to live. Asian cities consistently rank on the top 10 as the most expensive cities to live and work in the world. This does not account for other things like the loss of the standard of living (which is generally better in places like America) or the cost of food. Yes you can eat on the street, get a meal for a few dollars, even find some great local restaurants at bargain prices, but the general cost of living is very high. It may surprise many how expensive it can be to live and work in a Third World country like China or Vietnam. There are some advantages like being able to afford maid service but on the other hand things like educating your children can cost anywhere from 10,000 to 20,000 USD per year, and many of my friends complain the education is not worth that amount. Real estate is generally very high and what you get for your money is must less than what you can get in other parts of the world.
Almost all expatriates I know in Asia work very hard. It seems that to really live and work in Asia you need to be a bit of a self inflicted workaholic. Long hours are required as is a lot of travel and weekend work. Even holidays are never really holidays, there is always work to be done. The pool or posh gym you may have access to may hardly ever be used as there is just no time to go there. The daily commute on the roads can be grueling as most Asia cities have severely congested roads that can mean anywhere from one hour to several hours commuting each day. Add on top of that the price of food, gas and even automobiles—all of which are much higher than you would pay in a place like the United States or even Europe.
So is living in Asia Fools Gold? Well it is certainly not the cheap place that many seem to think it is. Asia makes a place like the US state of Hawaii look like a bargain.
Policing the internet
This last week my staff went to a meeting at our local Chinese police station. They told us that as of July 1st, 2009 all companies in our area are required to buy a machine or buy into a system that will allow the police to view the content we are viewing on the internet. The reason they gave was that they wanted to ensure we do not view any unsuitable, vulgar, or indecent materials, such as pornography. Putting our internet in the hands of the local police is not a solution.
China has waged a war with unsuitable, vulgar or indecent internet materials such as internet pornography. Both Google and the Chinese search engine Baidu had to give public apologies about allowing unsuitable materials through their search engines.
I personally think it is great that China is taking action to try to stamp out pornography and other lewd sites, but opposing internet pornography is only the beginning of what may become for China’s a real moral dilemma.
I have no problem with China policing and stamping out pornography on the internet, in fact, I praise them for taking a step such as this. But then, what about the other obvious “moral and lewd” behavior that is going on in China? Who is going to police and stamp those out? The late night phone calls you get in some Chinese hotels where a girl on the other end asks for “service.’ This obviously is not a 1:00 am call for room service and it is common knowledge that someone in the hotel is giving these girls the room numbers to call. Or consider the many Gentlemen clubs, Karaoke bars or other places that are ripe spots for prostitution. Countless hotels in China have condoms and other sexual paraphernalia in the hotel rooms—usually in the bathroom right next to the soap and shampoo. Many of these items are quite shocking and would be only seen in adult stores in America. A common sight in Chinese hotels—ranging from five star to one star rating— is to see Chinese men going up to a room with a young girl carefully arrayed with heavy makeup and scanty clothes. The Washington Post estimates that prostitution in China is flourishing, with numbers increasing each year and among all classes of people. Certainly if China must require me to invest in a machine that connects to the local police station so they can Nanny manage my internet, they should also start closer to home by cleaning up obvious problems like prostitution.
C.A.R.B.S or No C.A.R.B.S?
Readers in the Home Furnishing Industry should be aware that the California Air Resource Board (C.A.R.B) has established new limits on the emission of formaldehyde in all composite wood products—including products made by medium and thin density fiberboard (MDF), particleboard and plywood. This ruling which was effective 1 Jan 2009 has started a debate in the furniture industry of what it means for manufacturers, importers and retailers to be CARB’s compliant.
I have many of my customers asking me what does this C.A.R.B ruling mean and what do they need to do to be compliant? This new law could not have come at a more difficult time, when the industry is already stressed or even depressed. It will affect pricing and also will affect how an importer purchases products from overseas.
Here is a quick review of what it means to be C.A.R.B S. compliant:
1. Materials affected by C.A.R.B.S.:
a. Particleboard (PB)
b. Hardwood Plywood (HWPW) which is divided up into veneer core (HWPW-VC) and Hardwood Plywood Composite Core (HWPW-CC).
c. Medium Density Fiberboard (MDF) which is either standard or thin or Low and High Density.
d. Hardwood, Plywood or Medium Density Fiberboard which is made from ultra low emission formaldehyde (ULEF) resin or from No Add Formaldehyde (NAF) resin are not under this law but must still be tested and have documentation.
2. Items Affected by C.A.R.B:
a. This regulation affects all products regardless of finish, size or use. Don’t think that because you have a small box or any small item you are exempt. Quite the contrary! It affects all items large or small.
b. It also affects all products whether finished or unfinished. Remember with C.A.R.B’s the type of finish does not matter, only what the product is made of.
c. All items with these composite wood materials are under this law. There are allowed sell through dates for products already on the shelf or already produced until about July 2010.
3. Labeling and Documentation: This area promises to be one of the more difficult areas for vendors, importers and retailers.
a. Vendors
i. Label all products as C.A.R.B. compliant
ii. Keep accurate records of all purchases of C.A.R.B. compliant materials.
iii. Show compliance on the Bill of Lading or Invoice.
iv. Are expected to presently be producing C.A.R.B.S compliant items sold for distribution in the State of California.
b. Importers
i. Notify vendors of C.A.R.B’s and take all precautions to be C.A.R.B compliant.
ii. Keep accurate records of materials being used including:
1. Date the purchase, the name of the supplier of composite materials, and/or the finished goods.
2. Keep records for a minimum of 2 years.
iii. Are expected to be buying C.A.R.B.S compliant products. Sell through date is 1 July 2010,
c. Retailers
i. Take all necessary precautions to ensure this law is followed
ii. Get a written acknowledgement from your supplier of their understanding and compliance with the regulations..
iii. Keep records from the supplier to show that compliant materials are being used to manufacture the products being sold.
1. The record should include the date of purchase, and the names of suppliers of composite wood products and/or finished goods.
2. Keep records for a minimum of 2 years.
iv. Sell through date is 1 July 2010.
d. Please note that vendors, importers and retailers are not required to test for C.A.R.B compliance but they are required to keep records and document the precautions they have taken to comply with this law.
You can find out more about this law by going to the California State website.
Like most laws that are put in place, this law is filled with confusion. Here are a few points to remember:
1. This is a state and not a federal law, and only affects the sales in the State of California.
2. This law requires that everyone involved in this process must keep the necessary records—certainly one of the more burdensome parts of this law.
3. Expect to pay more for C.A.R.B’s compliant goods. To produce this raw material is a lot more expensive and therefore is an extra burden and material expense on the manufacture of the composite material that must pay for testing and record keeping. Also, for many in our industry where only small quantities of C.A.R.B.’s materials are used there will be an added burden. Someone at the end of the supply chain will have to be responsible for the suppliers they use for low volume C.A.R.B. compliant goods. Keeping small quantities of compliant materials will be a challenge for many suppliers. Further, some countries only have a few suppliers who are compliant. I know for example that in Vietnam there is at present only one plywood supplier that is compliant. Obviously other countries will similarly be limited in their supply sources.
4. This law does not affect solid wood products. Hardboard, natural wood panels, bamboo, softwood plywood (Cone Bearing) or orient strand board or chip board. Only the composite wood products as listed above.
5. The sell through dates for products which were manufactured before the 1 Jan 2009 deadline (importers were given a 3 month grace period which has passed) is technically only for products manufactured before the Jan 2009 date. For products produced after this date they are expected to be C.A.R.B.S compliant even if they are sold before the actual sell through day of 1 July 2010.
6. Recently the State of California gave panel manufacturers a 4 month grace period of compliance due to the economic crisis and their inability to sell the panels as fast as they normally would, click here for more information. If the bad economy continues California may also be forced to extend other sell through dates.
7. The California Air Resource Board has the authority to check the C.A.R.B.S. compliance measures of importers, retailers and distributer’s in the State of California.
8. Importers should be advising their vendors in Asia if they sell into the State of California and require C.A.R.B.S compliant products. Not all Asian vendors will automatically produce C.A.R.B.S compliant products as there could be added costs involved. Importers should clarify this with their Asian vendors.
So when you ask the question if you need to be CARB’s compliant the question really comes down to how many products do you sell into the State of California and how many of your products are made from composite wood materials? Only you can answer that question, but if you are selling into the State of California any items which are made of composite wood products you should make sure you conform to this new law.
Reference:
Click here to view the State of California’s sell through dates on CARBS.
Run Over!
The other day one of my customers told me that some samples we shipped to them had literally rolled out of the back of the truck and were run over by a tire of a large semi truck. I thought isn’t that exactly the way I feel a bit these days – like I was also run over by a semi truck? My life the last two months has been spent cleaning up the mess in my Vietnam Office that two of my staff left. Both of these staff were so corrupt that the only place I feel they should be at the moment is sitting in a jail cell. They stole, lied, cheated and schemed how to cheat on every single thing that was possible. They took from others and hurt others with no thought for anyone but themselves. Criminal is the kindest word I can think of using in this case; I feel I have looked the devil in the eye. In any other country these individuals could be locked up in a jail cell, but in Vietnam with a legal system that does not always see corruption as a problem there is not always justice – especially for foreigners.
Vietnam is a land of irony. Take for example their Civil Code Article 9 that is entitled Good Faith and Honesty. It says that “in civil relations, the parties shall act in good faith and honesty,” and then it goes on and describes that all people in Vietnam are expected to be honest in their dealings with each other. I recently pointed out to my staff since honesty was placed in the Civil Code it has become a legal concept. In theory this should mean that to be dishonest, lie, cheat and steal is against the law and companies should unquestionably be able to bring to justice the employee who decides to take money, embezzle or do a host of other illegal things. In theory it could be done, but in practice high principles are much more difficult to actually apply to your work place.
I have spent a large part of the month having meetings with my staff and vendors to talk about what corruption and honesty means. Most of my vendors have openly told me that they have been cheated so many times by corruption and dishonesty that it has hurt their business. Some have told me they had to dismiss most of their staff at one time or another due to corruption. Like me, these small business owners understand how corruption hurts business and why I had to take the steps I did. Many of them have openly thanked me for cleaning up my office and getting rid of the employees I did. They all smile when I tell them I want them to sign a contract to confirm that if they pay out any corruption money to any of my staff they must pay me back double the amount they have paid out.
To me this is all very ironic for a country that has honesty as a legal principle in their Civil Code. I should not have to have these conversations—they should be understood as they are part of the law. I should not have to define what corruption or dishonesty means.
At present Vietnam is clearly a country that is struggling to find a balance between what is honest and dishonest, corruption and non-corruption. There are many who feel that Vietnam’s corruption could derail their chances of becoming a real economic Asian Dragon. Most foreigners who are working here that I happen to know are frustrated and have been hurt by corruption. Also many Vietnamese are frustrated and, like their foreign counterparts, have also been hurt by corruption. That is very ironic since the principle of honesty has been written into their laws. So the theoretical principle of Good Faith and Honesty, because it is unenforced, may end up to be the very principle that completely derails Vietnam’s economic bubble, and may end up to be the reason that they may become just an economic Asian Dragon wannabe, instead of the real thing!
Transparency and Corruption
This is the 2nd time this year I have had to let some of my top people in Vietnam go due to corruption. Each time I have done this it amazes me that when I fire them, they give me a look telling me that I just do not understand their culture and then give a sigh and say “This is the Vietnamese way!” I am amazed that they will try to claim that being corrupt is just a normal way of life, a normal way of doing business. That somehow to lie, cheat and steal is Ok, so long as they try and make it seem part of the culture – part of the Vietnamese way of life, the Vietnamese way to conduct business. I personally find this very insulting to the many Vietnamese who are decent, honest and hardworking individuals. I do not feel that an entire country and people can be corrupt or even that they all really believe in corruption. There are many good and honest people in Vietnam.
Here are a few lessons I have learned from my personal experience and from some very hard knocks while running a company in Vietnam:
1. Watch out for the Sweet talking: Most of the people I have had to fire for corruption had good English skills and knew how to talk sweet. Because of their English ability they rose up in the company. Not everyone who speaks good English is corrupt, but in my opinion sometimes the sweet talking may be just a means to cover up a very nasty smell which is usually corruption. One of my staff told me about a manager I recently fired due to corruption that his problem was also that while he knew how to talk he actually did very little. Look for signs that work has not been accomplished on a consistent basis. It may be a cover for something else that is very wrong.
2. Look at the other Staff: Does the staff really respect their supervisor? There are always clues out there as to how others may feel about a particular person in a position of authority. Loss of respect probably has a cause which needs looking into. The staff may suspect that the person who is giving the orders is corrupt or lazy or arrogant for a reason—but they may not know why. Of course a lack of respect for managers affects the entire organization. When it is hard or slow to get things done you may suspect deeper problems.
3. Look for Alliances: In all my cases with corruption, alliances were formed enabling people in authority to be corrupt. In both my cases it involved key people in positions of authority and responsibility, who formed a kind of corruption alliance based on personal relationships outside the office. In hindsight I might have avoided problems when I learned they were forming these personal alliances. I should have made a change that might have avoided the problem. At the least I should have looked more closely at them to see at how things were being managed.
4. Start to investigate: You need to start the process of investigation immediately. There is a cultural affinity we can all appreciate if we ourselves have been an employee under a manager who is self serving. It is natural not to “squeal” on fellow workers—especially managers. Overcoming this reluctance will not be easy, but once you do you may be surprised what you find out.
5. Proclaim Zero Corruption Tolerance: I have a very tough non-corruption policy. This means I start to investigate even with small corruption. I have found that when I start to smell it I am usually right—something is wrong. We are requiring everyone we work with, including suppliers, to sign a very tough non-corruption policy. I also repeat my policy again and again in all the documents I give them, and I repeat it in many office meetings. In the end, only by rooting out verified corruption will you convince everyone you will not tolerate it. No matter how painful it may be, or how much you like or enjoy the person who is corrupt, you must take a stand and not tolerate corruption—even for small things. You can never turn a blind eye to something like this or it may just continue to grow.
6. Establish Checks and Balances: I have found from sad experience that only by putting in place very strong checks and balances—especially for those handling money—is it possible to make corruption more difficult. Requiring more involvement by several employees may not completely stamp out corruption but it certainly helps. Good management procedures are needed to achieve this.
7. Establish a Code of Conduct and Teach Ethics – You need to have all your staff sign and understand a code of conduct. And you need to teach them about business ethics. Also reach out and teach your suppliers and business partners. I have found by talking to my suppliers that most of them agree with me and even told me they do not like corruption any more than I do. One told me he paid an agent for a large US Company corruption money for an order and then the agent ran away and left him with the goods. He told me “I have really learned my lesson on this.”
There may be some in Vietnam who feel like corruption is OK—that it is the way of life, and that taking money is somehow an acceptable way to do business. This is set to change as Vietnam becomes more and more open and more foreign investors move in. Take for example the case of Intel now building a large factory in Vietnam and which has vowed to build and operate it corruption free. (You can see the article here.) Even the Prime Minster of Vietnam has admitted that corruption is a huge problem in Vietnam and he has vowed to work to stamp it out. But Vietnam has a long way to go to solve its corruption problems. In a recent Time Magazine a case is discussed where the government gave a stimulus payment to 10 million very poor people in Vietnam. Most of the money was intercepted by corrupt officials and never made it to those who needed it most.
So is corruption really the Vietnamese way of life? It is certainly a problem for investors and businesses. Transparency International ranks Vietnam as 121 out of 180 countries. Vietnam is ranked 121 along with other countries as Nepal, Sao Tome and Principe, Nigeria and Togo. Denmark is ranked No 1 with Somalia being ranked as no 180. Hong Kong is ranked as 12, Belgium, Japan and America are all ranked as 18. China is much higher than Vietnam with a ranking of 72 and India is not far behind with a ranking of 85. As you can see from the Transparency International rankings, Vietnam has a long way to go to be more transparent and to change the world’s perspective that they are a country where corruption is tolerated. The most important thing any company operating in Vietnam can do, is follow the lead of companies like Intel and take a tough non-corruption stand. They need to educate their employees and business partners, and ensure they have in place a zero corruption tolerance policy. After all, corruption is a hidden cost that hurts everyone here in Vietnam; because it reduces the prospect of bringing in more foreign investors, adds hidden costs to products and eventually even hurts the people who are participating in it.
Asian Life Prespective
Inside Carol and Quan's
new apartment
Earlier that day I had stopped into Papa John’s pizza for a bite to eat. The restaurant was crowded with scores of Chinese of all ages chowing down on the favorite American food—pizza. For a country that traditionally does not like cheese, they have taken to eating pizza, spaghetti, noodles and garlic bread—any and everything American or European. From ice cream to coke, to snicker candy bars to chocolate. China is and has become more western with more imported western foods and other items than ever before.
Carol and Quan
inside their new apartment
As I was going home later that day I thought about my day. Pizza, the rock n roll version of a Chinese supermarket and the modern Chinese housing estates. It dawned on me that this must be what living the Chinese dream is all about—good food, good shopping, good home and a good life.
Often in America we talk about the American dream as where and how we live. We speak of having a house in the suburbs, a good job where we earn lots of money, having a good school for your kids, a bit of baseball or sports on the weekend and being able to conveniently get to some good stores for shopping. Is this Chinese dream so much different? Maybe the Chinese are not so different from us after all—their wants and desires are similar to our own, and our dreams of living are similar to theirs: good food, good shopping, good home and a good life.
Perspective on a Crisis!
The other day I was in Hong Kong speaking to a friend and she told me she had put a position for a secretary on an online recruitment website. Just by the one online posting she received over 500 applications.
Workers in a factory
Asia is hurting. People are out of work. Factories are closing.
It is now official; China is losing its position as the world’s cheap manufacturing center. Factories all over China are closing their doors, but this time permanently. Gone are the days when everything in China was cheap, cheap. Prices are rising, factories are closing and people are out of work and looking to find a job—any job.
You think America or Europe has jobless problems, but what if you have over 75 million people out of work? Over 20 million of these people are migrant workers who do not have an education or any skills. They will be hard to train into a high tech manufacturing industry. They are untrained and used to only performing low skilled, basic labor. So where do you find work for all those people? The 75 million unemployed do not include the scores of newly graduated University students who have found it impossible to find a job after graduation. Also what about the millions of skilled labors who are now looking for work? Chinese college graduates this year have been told it will be tough or next to impossible to find work. After four years of slaving away at college, they are not happy.
China has some small unemployment benefits for those who are not working, but the amount given them will not be enough. Most of them need to depend on their extended families and friends. There is no such thing as an unemployment package to help you survive, live and eat while you transition to a new job as some countries have, especially in Europe. In China it is basically if you do not work, you do not earn money and in many cases do not eat.
Not having a job in China means more to workers than just being unemployed. The Chinese generally like to work and are considered very hard workers. Many of these laborers who are out of work may have been accustomed to working 60, 70 or even 80 hours a week. They work hard and do not complain—usually at some very basic manual labor.
In the Chinese constitution it is written that it is the duty and right of every Chinese citizen to work. In China work is not only seen as a right, but also an obligation. That is why you see so many migrant workers who are willing to spend months away from their families, traveling sometimes long distances, to a place to work where they could earn decent money. For them this was their privilege, their right, and their duty. It was their way of showing their family that they love and care for them enough to work hard so that their children and their children’s children can be educated and have a better life. They are willing to sacrifice today for the next generation. So for these workers the loss is just not having a job; it is the future of their family and the generations to come that is at stake. And it is a blow to their self esteem, self worth and pride.
BAH HUMBUG!!
By Anita Louise Hummel, President, Mondoro
Dickens’ Scrooge was visited by Ghosts because he said BAH HUMBUG!! to Christmas. Do you need the same treatment? Like Scrooge, I’ve said BAH HUMBUG!! and was consequently was visited by Ghosts who delivered a few scary thoughts.
A poor girl
Gone are the days when everything in China is cheap, cheap. I had a friend in the US recently exclaim to me: “Isn’t China cheap!” China is no longer cheap—prices are going up every day. Not just on the goods and products for export, but also for the staples such as rice or meat. Yes it is still cheaper to produce products in China than in other Western Countries, but rising prices means the Chinese will have to get smarter with the goods they manufacture.
In recent years, China has been under a lot of pressure to lower its currency against the US dollar, and this China has done. When I first came to China years ago the exchange rate was 1 USD to 8.2 RMB (Chinese Yuan). The Christmas of 2006 it was down to 1 USD to 7.8 RMB. Then last year we all gasped a sigh when it was “only” 1 USD to 7.3 RMB. We thought wow that is a drop; it can not keep on going. Well we were wrong. Today, this Christmas, it is about 1 USD to 6.8 RMB. What does that mean? It is more than just the exchange rate; it’s the other changes that have quietly been imposed by the Chinese Government. Exports are more expensive because of a cancellation of tax incentives. New labor laws mandate a 40 hour work week, and society insurance has been enacted. China is no longer the cheap, cheap place it once was.
But not all the changes are negative. China has been forced by circumstances to improve quality and reward her workers with a more equitable wage. Factories are working smarter and must now manage more professionally or suffer the consequences.
Ghost of Cheap Food Past: I have in my Hanoi Office several take out menus from some local restaurants. Formerly it was much cheaper to call out for food than to buy all the ingredients and cook it yourself. This was especially true for me since I travel a lot. Food would spoil very quickly especially in a warm, humid climate. Well the prices on the menus have changed so quickly that I have not been able to keep up with them. Every day it seems the prices here have been changing. In fact, inflation in a country such as Vietnam has suddenly become a huge problem, with prices rising over 30% in a single day. The funny thing of this is that once the prices increased they stayed high even after the world prices went down. Rising labor costs has kept many prices high. Even the guy who fixes my bicycle is asking for more money. The vet who treats my dog has raised his prices. The grocery store I shop at has significantly increased every price. Everywhere every thing is increasing. So if there is a bright side to any of this, I am forced to improve my cooking skills and learn to cook with less instead of more!
Ghost of Responsibility Past: I have lived in Asia for a long time and have seen a lot of poverty, and during that time heard a lot of stories of people who are suffering. It used to be I could hear it, see it and somehow compartmentalize it away. In Asia it is easy to become a bit callous towards poverty because you see so much if it. But I have come to realize that I can no longer be in Asia and not try to find some way to help others who are less fortunate that I am. I could see that I needed to develop a social responsibility, not just as a company, but also as an individual—a human being. The world is full of so many stories of suffering, but I have decided that even doing a bit, just a little bit, can make a difference.
In this newsletter I have described Tserong Dejie a 14 year old Tibetan Girl who is in need of a hearing aid. But she is just one of the children who need help. There is also a boy in her school named Nima Luori who also needs a hearing aid. Both these children go to school each day and do not hear or understand all that is being taught. In fact these children have never been able to see a qualified doctor about their problems. Tsering Buma is 7 years old and her father died years ago. She is pretty much left alone to fend for herself. Her teachers Aden and Lamo are extremely dedicated. Both of them earn only about 500 RMB (73 USD) per month or a total of 6,000 RMB per year (882 USD) yet they each spend most of their income on the cost of education. Aden spends 5,000 RMB (735 USD) per year to educate his own son to learn his native Tibetan language. Lamo, spends over 4,000 RMB (589 USD) per year to be able to further her own education through a distance learning program. These people teach and go to school in a small broken down school in the mountains of Tibet. There are few luxuries there and the walls are broken and hardly holding up. Life is hard. When was the last time that any of us hungered after an education as much as this that we were willing to sacrifice and endure what they endure?
The stories from Vietnam are similar. There is a Sister Monk Thich Dam Lan who lives in a Pagoda outside Hanoi where 53 orphaned children are in her care. She depends solely on what money she can personally obtain including donations. Presently she has over 15 small babies under the age of 24 months. A Vietnanmese Catholic Priest in Northern Vietnam has over 200 children in his care; many of them are severely handicapped. People like these two wonderful people dedicate their lives to helping those who are less fortunate than we are.
Old Scrooge finally learned his lesson the “dramatic” way with Ghosts of Christmas Past. My attitude has for too long been BAH HUMBUG!! Before the Ghosts visited me I felt like many of you. Just forget Christmas. Skip the presents, skip the unwanted gifts, and skip the festivities. After all there is not much to celebrate this year. It is getting harder and harder to watch the news on TV, whether CNN, BBC or even the foreign Chinese news station Channel 9. Everywhere there is bad news.
Instead I hope to have a Joyful Christmas—having learned my lesson from good Old Scrooge. I am going to strive to remember those who are less fortunate, those who need our help, and those whose lives we hold in our hands—those we have the ability help and make a difference in their lives. We can all: Help Our World – One Person at a Time.
To find out more about how you can be involved or help with Mondoro Charities go to www.mondoro-charities.org
Not a Wipe Out!
By Anita L Hummel, President of Mondoro
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Livingroom furniture and accessories
The economy is on everyone’s mind these days. Anywhere you go in the world everyone knows about the world financial crisis. Therefore it is no surprise that the state of the economy was on the minds of everyone at the October High Point Furniture Market in North Carolina. One of my customers told me that it was not a complete wipe out! I liked that analogy; it was down and it was fallen, but we did not wipe out and break any bones! Isn’t that a nice thought?
This is the first time in about 10 years or longer that I did not attend the High Point Furniture Market. I had many reasons for this, but the biggest was the same reason as everyone else, the “E” word. Things in the industry are just not what they use to be. News looks bleat, I mean even the news stations now are starting to say that fateful “D” word. So when that happens it is time to buckle down, cut back and work just that bit harder, not because we all want to, but because we all have to just to survive.
Here is a new twist on the October market dates. Historically speaking October has never been a great month for business. The Great Depression started in October on a fatal black Tuesday, October 29th, 1929. Then October 19,1987 became Black Monday, a another day when the Dow lost over 22.6% of its value. Sound familiar?
I am not sure what historians will call this October. They may call it the Black October, or the month our lives changed forever. The verdict is still out there as to what will happen with this roller coaster financial ride we have all been on. In fact the whole world may say thank goodness we are past October and now into November!
Holding the market in October compounds the problem because every 2 or 4 years it is the month just before a US Presidential or congressional Election. No matter which side you are on, it is an unsettling time since some of us will be happy about the expected outcome of the elections and others will not be.
This time the whole world is involved in this election, and they also have a kind of vested interest to see who the President will be and what if anything will change. So, this political uncertainly does absolutely nothing to help the worldwide economic worries that take place during the month of October, causing economic and political anxiety to hit right smack in the middle of the October High Point market.
Not even taking into account that October has a bad history for financial disasters, I am not sure how any trade show anywhere around the world could be considered great during the present unsettling times. Even the famous trade show in Guangzhou called the Canton Fair show had a huge decline in attendance. One factory said that their show participants were off by 70%. That is a huge decline. European and US buyers were noticeably absent from the Canton Show as compared to past years. This economic chilly wind has also been felt in Asia and at the Asian shows.
From a supplier, wholesaler or retailers point of view, there are other reasons for not wanting a furniture market in October. It is too late for the Christmas selling season because your hottest, newest products cannot be manufactured and shipped in time. That is one reason people have asked to move the October market to a better month. The show is not timed so everyone involved can benefit from the holiday season. With the Christmas selling season starting earlier than formerly, buyers must time purchases correctly.
So what is the solution? I am not sure what it is. After all, the High Point Market Authorities have already gone around and around changing dates in the past few years. Perhaps we have to keep the October market, but we must realize that October is a month that can be unsettling to people for a variety of reasons. And sometimes all we can do is hope, pray, and then be thankful that it was not a complete and total wipe out!
By Anita L Hummel - President of Mondro
Things have been a bit rough the last few weeks. Not only have I been recovering from a leg infection, but everyone in China now has to suffer from the let down of the Olympic Games. The games were here, now they are gone. I actually cried when the US Men’s Basketball and Volleyball teams won the gold. I felt a slight pinch of jealousy and envy as I watched how many medals the Chinese were getting and I felt a sense of pride when I realized that even though America had fewer Gold metals than China, we did have more over all Olympic medals than China. I could now after all still hold my head high in China.
But now the Olympics are over. I can no longer focus on the medal count, and I can no longer use the Olympics as an excuse to have a good cry. Now when I cry I get back to reality and cry for the US economy. Life! Well it has been a rough summer….at least a rough summer economically and now on top of that those of us in China have the let down of the Olympics, so we have plenty of reasons to cry.
I was speaking to one of my customers this morning and she told me that the summer was also tough for her. I think everyone in our industry has had a hard summer. There have been a lot of changes going on. Housing is down, in fact so down that many people are just hoping to stay in their house long enough to make it through the tough times. The last thing they are thinking about is a new piece of furniture for that bedroom.
I am not sure if Americans and Europeans realize how tied their economy is to China and Asia. When America or Europe coughs, Asia gets a cold. If American’s stopped buying goods from Asia, Asia will feel the pinch and would hurt in a very bad way, in fact it would maybe never recover.
There is an economic cold that Asia is feeling, the chilly wind that comes from the west. It is a cold that felt around Asia, but perhaps more so in the small ma and pa factories than in the larger ones. After all the larger factories can give up a few of their Mercedes Benz, skip a few of their 10 course meals and go to McDonalds or decide to finally sell off that private golf driving range they have at their factory. The small guys, the ones that run the small Ma and Pa factories are a lot more vulnerable. These are the guys who are down on the factory floor, each and every day, working side by side with their workers to produce products to sell in America. They are exactly the kind of people that we as Americans should be supporting and helping along the economic road of life. They are the future. They are just like you and me. They have the same dreams and desires that we have. They want to have enough money to support their family, to put food on their table, to give their children a good education. They are the people that we should be buying from, we should be supporting and we should be making sure they stay in business.
By Anita L Hummel - President of Mondoro
Watching the opening ceremony of the Olympics, a thought comes to my mind as to how far China has come in my lifetime. When I first came to China as a carefree, backpacking foreigner in 1985, I was constantly stared at on the streets of the capital. For two weeks, the world came to China to see how far it has come.
Being a foreigner in China used to be unique, but today, I hardly get a glance from the Chinese. They are so used to seeing foreigners on the streets that we are no longer unique. The Chinese have figured out that we have big noses, big eyes, and big hips. We are not noticed in the way we were when so few foreigners traveled China as I did. During that time, being a foreigner in places like Beijing or Shanghai drew attention. Your friendship was sought after—having a chance to talk to you was an opportunity that few Chinese wanted to miss. Sitting next to a foreigner on a bus or plane was a big deal. We received special treatment, and, in some cases, foreigners expected that treatment. We felt that in the1985 China, we were important. As China has advanced, they have instead focused on national pride. Proud to be Chinese! As they say in China, “Wo Ai Zhongguo,” which means “I Love China!” And the Olympics have rightfully built on this pride. After all, the Salt Lake City games and the Atlanta games helped to build American pride. So who can fault the Chinese for having the Olympics build Chinese pride?
The Olympics is not just about the games; it is also about the arrival of China onto the world stage. They want the world to stand up and take notice. China is showing the world how it has grown and how much it has advanced.
China in 1985 was backward, awkward, and totally Third World. Today, China is bright, shining, and full of modern conveniences. Cities like Beijing or Shanghai are completely world class. Who could fault the Chinese for their hard work and determination? And what a party they gave the world! Who could fault them for demonstrating a bit of pride? I cannot—and believe me, I have lived in Asia long enough to have become cynical about these kinds of things.
So as I watched the Olympics opening ceremony, all I could do was sit there in awe and think, “China, you have come a long way baby!”
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